I am doing the books for a sandwich shop. It is a partnership. They both put in 8000 and bought the business for 14000. How do i post the purchase of the business in sage? Sorry newbie prob be a straight forward question to you more experienced book keepers! Only qualified last year!!
The £8k each they put into the business is their capital introduced and as a partnership will be in their individual Capital Accounts in the 3000 range (one for each partner) - CR this account.
The purchase of the business will be an asset, although the £14k will be broken down into something like lease/goodwill/equipment etc and you will need the completion statement for the exact figures. These will then go into the range 0000, being a DR.
You will then need to sort the difference of £2k out also.
Make sure that there is also a partnership agreement in place so as avoid complications or arguements at a later stage!
